Financial innovation generates benefits for the regulator, the consumers and the financial sector, but it also entails risks. Financial authorities have different tools at their disposal to provide a balanced response to the challenges posed by the new technologies.
Innovation facilitators (accelerators, innovation hubs and sandboxes) aim to convey supervisory and regulatory expectations to the private sector and to improve the authorities' understanding of the risks and opportunities of financial innovation.
In this context, Banco de España aims to facilitate the innovative process in the financial sector, either by making available or participating in several innovation facilitators.
In the following link, you can download a list of frequently asked questions 
(430 KB) about the Spanish regulatory sandbox and the communication channels provided by Banco de España.
The sandbox provides a safe environment in which to test projects involving a technology-based financial innovation applicable to the financial system and where risks to the financial system and participants have been mitigated or minimised. It is regulated by Law 7/2020, of 13 November, for the digital transformation of the financial system.
This is a direct communication channel provided for in Law 7/2020 through which queries on financial innovation can be addressed to Banco de España.
These consultations should refer to new applications, processes, products, business models and other issues related to technological innovation applied to the provision of financial services.
Queries on technology-based financial innovation do not imply the initiation of an administrative procedure, nor do they have the status of legal advice with binding effect. The information provided will be processed confidentially.
Through this channel provided for in Law 7/2020, interested parties can submit written queries to Banco de España regarding the regime, classification or application of sectoral financial regulation related to a case of application of technology to the provision of financial services.
Upon completing the electronic form (using the section "Procedures – Electronic Register", located on the right-hand side of the website), please indicate in the field "details of the request” that the query concerns the provisions of Article 21 of Law 7/2020.
Banco de España cooperates internationally with other public authorities to ensure that instruments for the promotion of financial innovation incorporate a global dimension.
Banco de España, together with the National Securities Market Commission, the Directorate-General for Insurance and Pension Funds and other authorities of the European Economic Area, participates in the European cross-border testing mechanism. The framework for these tests, developed by the European Forum for Innovation Facilitators (EFIF), came into force on 30 March 2022. All information on cross-border testing is available on the EU's Digital Finance Platform.
The Bank of Spain is participating for the second consecutive year in the European Blockchain Sandbox, an initiative led by the European Commission for blockchain-based projects within the EU/EEA. This program provides a pan-European framework that fosters regulatory dialogue between innovators and financial and non-financial authorities, addressing use cases from both the private and public sectors.
Launched in 2023, the initiative is carried out over three years, through annual cohorts in which 20 projects are selected. Relevant authorities are invited to participate in the regulatory dialogues for each of these projects.
In the 2024 cohort, nearly 60 applications were received. The selected use cases
represent geographically diverse promoters and cover a wide range of regulatory topics and industrial sectors. Around 40 national and European authorities will participate in this edition.
Following the dialogues held during the first cohort between regulators, supervisors, and project promoters, a report that compiles best practices identified in these exchanges was published.
For further information, please visit http://www.blockchain-sandbox.eu/.
